Recent efforts in Dubai by the DMCC and the Dubai Airport Free Zone, and the Securities and Commodities Exchange have paved the way for Dubai to become an attractive destination for crypto-based asset trading.
Dubai – Middle East Crypto Panacea
Bittrex Global’s chief executive officer is hailing Dubai as a well-positioned beneficiary of the growing cryptocurrency market in the Middle East, as Dubai’s regulators are pushing toward an acceptance of blockchain-based technologies.
According to the Bittrex CEO, Stephen Stonberg, the UAE and Dubai are becoming great places to “set up your token project, or run a cryptocurrency exchange.”
Paving the way for Dubai’s crypto industry
Dubai Airport Free Zone Authority has signed an agreement with the Securities and Commodities Exchange, that would pave the way for the regulation, trading and offering of cryptocurrency assets within the free zone. The free zone is a business hub located within the Dubai International airport that boasts 1800 registered businesses from 20+ sectors, who benefit from a business-focused regulatory and tax environment that offers, amongst other benefits, total ownership and full repatriation of earnings. Businesses operating in the UAE must register for a particular trade license, either free zone or offshore. The city of Dubai’s DMCC (Dubai Multi Commodities Centre) freezone opened a blockchain-based exchange, called DigitalSugar.io, for sugar trading in October 2020, which operates on the Universa blockchain.
According to Stonberg, institutional money going into Ethereum and Bitcoin is probably the real driver for the market. Bittrex Global plans to have an expanded footprint in Dubai, together with more clients in the region.
Crypto optimism in recent weeks
Cryptocurrencies have rallied in recent weeks, with the voices of Tesla CEO Elon Musk and Cathie Wood, an investment manager, which has boosted market sentiment. Optimism also came via the chairman of the Federal Reserve, Jerome Powell, who announced that the U.S. Central Bank’s $120M monthly spending would be “tapered”, helping to ease fears in the market.